Caivano recently hit the headlines and prompted government action after the teen gang rape of two cousins aged 10 and 12 last summer.

Caivano town council was already dissolved for mafia-related offences on October 16.

This latest alleged infiltration is related particularly to the management of public works contracts, judicial sources said.

Police said the criminal organisation was able to obtain confidential information from public administrators regarding the awarding of contracts so that they could address extortion demands to the winners.

The government this summer issued a Caivano decree aimed at curbing youth involvement in Mob activities, setting jail time for parents who fail to stop their children truanting.

A whole raft of measures was aimed at fighting mafia and drug-related crimes in the town, which is seen as a test bed for many towns, particularly in southern Italy.

ANSA